November 25, 2019 - The case was voluntarily dismissed.
March 6, 2019 - An investor in shares of CenturyLink, Inc. (NYSE: CTL) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by CenturyLink, Inc. in connection with certain allegedly false and misleading statements made between May 10, 2018 and March 4, 2019.
Monroe, LA based CenturyLink, Inc. provides various communications services to residential, business, wholesale, and governmental customers primarily in the United States. CenturyLink, Inc. reported that its annual Total Revenue rose from $17.47 billion in 2016 to over $17.65 billion in 2017 and that its Net Income increased from $626 million in 2016 to over $1.38 billion in 2017. Shares of CenturyLink, Inc. (NYSE: CTL) grew from $13.56 per share in late 2017 to as high as $24.20 per share in August 2018.
On March 4, 2019, CenturyLink, Inc asked the Securities and Exchange Commission to extend the deadline for filing its 2018 annual report. CenturyLink stated that the reason for the delay in filing was due to a “material weakness” it found in internal controls linked to recording revenue at Colorado-based Level 3 Communications, which it purchased for around $34 billion in 2017. CenturyLink also stated that there were problems with measuring the fair value of assets and liabilities. Shares of CenturyLink, Inc. (NYSE: CTL) declined to as low as $11.52 per share on March 6, 2019.
According to the complaint the plaintiff alleges on behalf of purchasers of CenturyLink, Inc. (NYSE: CTL) common shares between May 10, 2018 and March 4, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 10, 2018 and March 4, 2019, the defendants made false and/or misleading statements and/or failed to disclose that CenturyLink had undisclosed material weaknesses in its internal controls over revenue recording processes and the procedures for measuring fair value of assets and liabilities assumed in connection with its Level 3 Communications, Inc. acquisition, that consequently, CenturyLink would delay the filing of its Form 10-K for the fiscal year ended December 31, 2018 despite initially reporting those financial results in a press release dated February 13, 2019, and that as a result, CenturyLink’s public statements were materially false and misleading at all relevant times